Brady Corporation Closes the First Phase of the Sale of Its Die-Cut Business
May 02 2014 - 8:00AM
Business Wire
Brady Corporation (NYSE: BRC) (“Brady”), a world leader in
identification solutions, today announced that it has completed the
first phase of the previously announced two-step divestiture of its
European and Asian Die-Cut businesses to Boyd Corporation, a
leading global provider of highly engineered, specialty
material-based environmental and energy management solutions.
On February 24, 2014, Brady announced that it reached an
agreement to sell its Die-Cut business to Boyd Corporation in a
two-step process. The first step, which closed on May 1, 2014,
involved the sale of the Die-Cut business with operations in
Germany, Thailand, Korea, and Malaysia. Cash proceeds received on
May 1, 2014 from the completion of the first phase of this
divestiture were approximately $53 million and are subject to
customary final working capital and net cash adjustments. The
second step, which is anticipated to close in the fourth quarter of
our fiscal year ending July 31, 2014, involves the sale of the
Die-Cut business with operations in the People’s Republic of China
and associated global sales support and is subject to various
customary closing conditions.
About Brady Corporation
Brady Corporation is an international manufacturer and marketer
of complete solutions that identify and protect premises, products
and people. Brady’s products help customers increase safety,
security, productivity and performance and include high-performance
labels, signs, safety devices, printing systems and software, and
precision die-cut materials. Founded in 1914, the company has a
diverse customer base in electronics, telecommunications,
manufacturing, electrical, construction, medical and a variety of
other industries. Brady is headquartered in Milwaukee, Wisconsin
and as of July 31, 2013, employed approximately 7,400 people in its
worldwide businesses. Brady’s fiscal 2013 sales were approximately
$1.15 billion. Brady stock trades on the New York Stock Exchange
under the symbol BRC. More information is available on the Internet
at www.bradycorp.com.
Forward Looking Statements
Certain information in this news release constitutes
"forward-looking statements." These forward-looking statements
relate to, among other things, statements concerning the
consummation of the sale of the Die-Cut business and the Company's
future financial position, business strategy, targets, projected
sales, costs, earnings, capital expenditures, debt levels and cash
flows, and plans and objectives of management for future
operations, all of which are based on current expectations and
assumptions that are subject to risks and uncertainties.
The use of words such as “may,” “will,” “expect,” “intend,”
“estimate,” “anticipate,” “believe,” “should,” “project” or “plan”
or similar terminology are generally intended to identify
forward-looking statements. These forward-looking statements by
their nature address matters that are, to different degrees,
uncertain and are subject to risks, assumptions, and other factors,
some of which are beyond Brady's control, that could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements. For Brady, uncertainties arise
from: Implementation of the Workplace Safety strategy; the length
or severity of the current worldwide economic downturn or timing or
strength of a subsequent recovery; future financial performance of
major markets Brady serves, which include, without limitation,
telecommunications, hard disk drive, manufacturing, electrical,
construction, laboratory, education, governmental, public utility,
computer, healthcare and transportation; future competition;
changes in the supply of, or price for, parts and components;
increased price pressure from suppliers and customers; Brady's
ability to retain significant contracts and customers; fluctuations
in currency rates versus the U.S. dollar; risks associated with
international operations; difficulties associated with exports;
risks associated with obtaining governmental approvals and
maintaining regulatory compliance; Brady's ability to develop and
successfully market new products; risks associated with
identifying, completing, and integrating acquisitions; risks
associated with divestitures and businesses held for sale; risks
associated with restructuring plans; environmental, health and
safety compliance costs and liabilities; risk associated with loss
of key talent; risk associated with product liability claims;
technology changes and potential security violations to the
Company's information technology systems; Brady's ability to
maintain compliance with its debt covenants; increase in our level
of debt; potential write-offs of Brady's substantial intangible
assets; unforeseen tax consequences; risk, associated with our
ownership structure; and numerous other matters of national,
regional and global scale, including those of a political,
economic, business, competitive, and regulatory nature contained
from time to time in Brady's U.S. Securities and Exchange
Commission filings, including, but not limited to, those factors
listed in the “Risk Factors” section within Item 1A of Part I
of Brady’s Form 10-K for the year ended July 31, 2013.
These uncertainties may cause Brady's actual future results to
be materially different than those expressed in its forward-looking
statements. Brady does not undertake to update its forward-looking
statements except as required by law.
Brady CorporationInvestor contact:Aaron Pearce,
414-438-6895orMedia contact:Carole Herbstreit, 414-438-6882
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